Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar little changed for week as Fed, RBNZ meetings loom

NZ dollar little changed this week as Fed, RBNZ meetings loom

By Paul McBeth

Jan. 24 (BusinessDesk) - The New Zealand dollar is heading for a 0.3 percent gain this week as traders prepare for policy meetings by the local Reserve Bank and US Federal Reserve next week to dictate the direction for the local currency.

The kiwi was trading at 82.83 US cents at 5pm in Wellington from 82.57 cents at the close of trading last Friday, and was little changed from 82.88 cents at 8am and 82.84 cents yesterday. The trade-weighted index fell to 78.43 from 78.61 yesterday, and is heading for a 0.4 percent weekly decline from 78.74 last Friday.

A BusinessDesk survey of six traders and strategists on Monday predicted the local currency would trade between 81.20 US cents and 84.20 cents this week. Four predicted the kiwi would fall this week, while one expected it to gain and one saw it largely unchanged.

Investors are waiting on the New Zealand and US central bank meetings next week to firm up their bets on the kiwi. Traders are split on whether the New Zealand’s Reserve Bank will hike interest rates at the January meeting after faster than expected inflation figures in December, while a Wall Street Journal report this week speculated the Fed will further trim another US$10 billion its US$75 billion monthly asset purchase programme.

“Whether the Fed steps up tapering or whether the RBNZ hikes or stays on hold are by no means certain,” said Chris Tennent-Brown, economist at ASB Bank in Auckland. The kiwi has been trading between 82 US cents and 84.50 cents in past month, and “there’s nothing to get it out of the recent range between now and then,” he said.

The local currency came under pressure yesterday after weaker than expected Chinese manufacturing data kicked off fears about the strength of the global economic recovery, and as concerns about emerging markets were fanned by Argentina devaluing its peso and Turkey’s central bank intervening in foreign exchange markets.

The kiwi gained to 94.49 Australian cents at 5pm in Wellington from 94.03 cents yesterday, and fell to 85.66 yen from 86.37. It dropped to 60.55 euro cents from 61.06 cents yesterday, and declined to 49.79 British pence from 49.93 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news